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Hi everyone,
I am working with a financial institute (Commercial Bank) and our local regulations does not allow them to claim Reverse VAT. To explain in more details:
When bank is purchasing service from foreign (Non Resident) vendor, they have a liability to pay VAT tax for the vendor to local Tax Agency, but the couldn't claim it, so from the accounting side, there are following transactions after releasing AP Bill for $100:
- Debit: Expense - $100
- Credit: AP - $100
- Debit: Expense - $18 (100 *18% VAT, instated of General VAT)
- Credit: Reverse VAT Payable - $18
At this moment, I could configure tax zones and categories to include in documents both General and Reverse VAT, but if I will include just Reverse VAT, then system will deduct VAT amount from the AP Amount, which should be paid to vendor.
Is there any possibility to get this kind of configuration set in Tax Module?
Hi Levan,
I wish I could help on this, but I don't understand the Tax Module well enough at this point.
Hi Tim, I just got the feedback on this issue from Acumatica support team. It seams that there is no option to achieve this case through configuration, so it needs some customization in Tax Module.
Thanks for the follow-up Levan
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